Faced with inflation and social anger, the government increases the minimum wage in Greece

“This battle against inflation and this energy crisis affect us unequally and will ultimately require a European response. At the national level, however, we are already building our own ramparts,” affirmed, Friday, April 29, the Greek Conservative Prime Minister, Kyriakos Mitsotakis, after announcing on April 20 an increase of 50 euros in the minimum wage, now set at 713 euros gross per month. Around 650,000 employees are concerned by this measure, effective since 1er may. The unemployed also see their monthly allowance increase from 407 euros to 437.50 euros. Over one year, this is an increase of 9.7%.

But for the main left-wing opposition party, Syriza, it is not enough given inflation, which reached 9.4% in April according to Eurostat, well above the European average of 7.5. %. In one year, the price of natural gas has increased by 68% and that of electricity by 79%. Greece is among the most expensive countries in the European Union (EU) for the tariffs applied on the wholesale electricity market. In March 2021, she had even opened a formal investigation “in order to assess possible abusive behavior” of the public supplier in the wholesale electricity sector.

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The government granted social aid totaling €4 billion, which benefited 1.5 million low-income households, farmers and small businesses. But despite this boost, according to the main union in the private sector, the GSEE, nearly 60% of employees say they have reduced their consumption of basic food products because of the price hike, while 74% say they have reduced their consumption of heating or electricity. Social anger is rising across the country and several citizens are taking legal action against electricity companies, accused of inflating prices. Several thousand people marched this 1er May in Athens to protest against rising energy and food prices.

Towards new aid

“We are in a situation of war”, considers Lambros Liolios, the president of the Association of owners of cafes and restaurants of Patras (main city of the Peloponnese, in western Greece), which is filing a complaint against the revaluation of prices carried out by the public electricity supplier, the DEI, partly privatized in the fall of 2021. “How can you pay electricity bills of 10,000 euros? What state aid are we talking about? From 60 euros per month? », he got angry, Wednesday, April 27, on the public television channel ERT. Syriza denounces a “speculation on the energy market” and the establishment of a “energy cartel” committed with the partial privatization of the public electricity supplier in the fall.

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